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Sega Q2 results exceed expectations, driven by surge in operating income for pachislot and pachinko machines

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Sega Q2 results exceed expectations, driven by surge in operating income for pachislot and pachinko machines

Entertainment Contents segment revenue, which includes games, fell 2.4% to $916.8 million

Sega's second quarter results for 2026 have exceeded expectations, driven by a 331.6% surge in operating income for its pachislot and pachinko machines business.

The firm also noted its Entertainment Contents segment exceeded expectations, despite revenue dropping 2.4% to ¥145.1 billion ($916.8 million).

Sega reported a 23.5% decline in full game sales to ¥20.5 billion ($129.5 million), down from ¥26.8 billion ($169.3 million) in the same period last year. 10.6 million full game units were sold during the quarter, up from 9.3 million year-on-year.

New titles generated ¥0.3 billion ($1.8 million) in revenue, down from ¥8.7 billion ($54.9 million). Catalogue sales reached ¥20.2 billion ($127.6 million), a 12.2% increase from ¥18 billion ($113.7 million).

Free-to-play sales "performed slightly below expectations," falling 3.3% to ¥26.0 billion ($164.3 million).

DLC and subscription services "performed steadily," and Rovio "performed generally in line with expectations."

Earlier this year, GamesIndustry.biz spoke to Angry Birds creative officer Ben Mattes about life under Sega following its $776 million acquisition in 2023 and the subsequent $200 million impairment.

"They know that we're a transmedia company. They know that we're a mobile-first company. They know that they've had successes with Sonic. They know that they want to grow their mobile expertise," said Mattes.

"So of course from day zero, the ambition has been to make Angry Birds every bit as big as Sonic is from a transmedia point of view, and grow not just the Rovio mobile free-to-play business, but all of Sega's mobile and free-to-play expertise and live-ops expertise across its portfolio."


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